Clause 65 - Aggregation of losses in case of change in constitution of unincorporated body. - Direct Taxes Code, 2010

Aggregation of losses in case of change in constitution of unincorporated body. 65. (1) The amount of unabsorbed current loss from ordinary sources calculated under sub-section (3) of section 61, for the financial year ending on the date of the retirement, or death, of a participant, shall be reduced by the amount in proportion of the share of the retired, or deceased, participant. (2) The amount so reduced under sub-section (1) shall be the unabsorbed preceding rated body. year loss from ordinary sources, for the financial year beginning on the date immediately following the date of retirement, or death, of a participant for the purposes of sub-section (2) of section 61. (3) The amount of unabsorbed current loss from the special source calculated under sub-section (3) of section 62, for the financial year ending on the date of the retirement, or death, of a participant, shall be reduced by the amount in proportion of the share of the retired, or deceased, participant. (4) The amount so reduced under sub-section (3) shall be the ''unabsorbed preceding year loss from the special source'', for the financial year beginning on the date immediately following the date of retirement, or death, of a participant for the purposes of sub-section (2) of section 62. (5) The provisions of this section shall apply notwithstanding anything in any other provision of this Code. (6) In this Code, any reference to the unabsorbed preceding year loss from ordinary sources and unabsorbed preceding year loss from the special source in respect of an unincorporated body where a change has occurred in its constitution due to death, or retirement, of its participant, shall be construed as a reference to the amount so reduced under subsection (1) and sub-section (3) respectively.